The Trump administration has initiated a sweeping freeze on federal aid

Just one week into President Donald Trump’s second term, his administration is escalating efforts to reshape the federal government by tightening control over federal spending and distancing it from congressional oversight.

On Monday, the Office of Management and Budget (OMB) issued a directive halting “all federal financial assistance” targeted by the president’s recent executive orders. The freeze encompasses a broad range of priorities, including domestic infrastructure projects, energy initiatives, diversity programs, and foreign aid.

A two-page memo obtained by POLITICO outlined the details of the directive, which excludes payments for Social Security and Medicare. “Federal resources should not be used to promote Marxist equity agendas, transgender ideology, or Green New Deal-style social engineering policies that fail to deliver meaningful benefits to everyday Americans,” the memo stated. Three sources confirmed the authenticity of the document.

The freeze, which could disrupt billions of dollars in grants to state and local governments, has created widespread uncertainty. Many programs benefiting households may face delays or funding cuts, though the memo claims the pause does not apply to assistance “provided directly to individuals.” It remains unclear whether indirect funding—such as money routed through states or organizations—would be affected.

The OMB memo lacks detailed guidance on specific payments being suspended, but it broadly orders federal agencies to halt funding “temporarily” for programs impacted by Trump’s executive orders. This includes freezing funds allocated under the Inflation Reduction Act and the bipartisan infrastructure law enacted in 2021. The directive also imposes a 90-day suspension of foreign aid.

Senate Minority Leader Chuck Schumer denounced the move, calling it “another instance of lawlessness and chaos from the Trump administration, blatantly disregarding laws that support vital programs in every community across the nation.”

In a statement, Schumer urged the administration to lift the freeze immediately, stating, “They claim this is temporary, but no one should trust that. President Trump must reverse this course of action and release the taxpayer dollars approved by Congress. These investments are not optional—they are the law.”